The Apprenticeship Levy and why retailers and food manufacturers must embrace Apprenticeships more

Debbie Gardiner (pictured), CEO of Qube Learning, explains why “Apprenticeship Reforms” commenced on the 1st May, which changed the way that Apprenticeships are funded and delivered using new Apprenticeship Standards and in turn, has changed how employers are recruiting.

The Reforms mean that large employers with an annual payroll over £3m started paying a 0.5% Apprenticeship Levy from April and registered on The Apprenticeship Service (TAS). Smaller employers now make a 10% contribution to the price of the Apprenticeship, whilst the government fund the remaining 90%. Additionally, there is a £1000 employer incentive for starting an Apprentice aged 16-18 and micro employers also benefit from 100% funding for their 16-18-year-old Apprentices.

In March and April of 2017, Apprenticeship recruitment was at an all-time high as employers and training providers took advantage of the old funding model. Because of the spike in new Apprenticeship enrolments, this naturally resulted in a significant reduction in vacancies in May and June. The number of vacancies is expected to increase again as employers work through their systems and procedure for recruitment, and anecdotal feedback suggests things will pick up in September.

Apprenticeships are an all age programme that can be delivered to new entrants to work as well as developing and upskilling existing employees. In the retail and food sector, Apprentices can be beneficial and can have a direct impact on some of the key issues that affect the industry. Qube Learning’s customers report improved productivity and customer satisfaction, increased sales profitability, customer loyalty, and reputation.

Read the full article at QA Education’s website.